The CBDT is the authority vested with the responsibility of the administration of laws related to direct taxes through the Department of Income Tax. Join us to learn more. For more information, visit us at:- https://academy.tax4wealth.com/blog/role-of-cbdt-in-indian-taxation-system

1. Role of CBDT in Indian Taxation System

2. Historical Background of Central Board of Direct Taxes (CBDT):
The Central Board of Revenue is the apex body of the Income Tax Department. It
is charged with taxes that came into force due to the introduction of the
Central Board of Revenue Act, 1924. In the beginning, the board was
provided the charge of direct as well as indirect taxes. However, when the
administration taxes became complex to handle, then the board was divided into
two such as;
1. Central Board of Direct Taxes
2. Central Board of Excise and Customs
Both of the aforesaid boards came into force on 1 January 1964. The separation of
the same was introduced by constituting two boards under Section 3 of the
Central Board of Revenue Act, 1963.
Also read; CBDT Interim action plan
What is the Central Board of Direct Taxes (CBDT)?
The Central Board of Direct Taxes (CBDT) is a statutory body established
under the Central Board of Revenue Act, 1963. It is considered the official
financial task force unit of India. The Central Board of Direct Taxes is governed by
the Department of Revenue under the guidance of the Ministry of Finance.
Originally, the board was known as the Central Board of Revenue which worked as
an apex body of the Income Tax Department. The aforesaid board was
established under the Central Board of Revenue Act, 1924. It was governing
direct as well as indirect taxes. Later, in the year 1964, the Central Board of
Revenue was divided into the following two boards;
1. Central Board of Direct Taxes
2. Central Board of Excise and Customs

3. What are the structure of the Central Board of Direct Taxes (CBDT)?
The Central Board of Direct Taxes consists of six members and a chairman. They
deal with the following aspects;
✅ Administration
✅ Income Tax & Revenue
✅ Audit and Judiciary
✅ Legislation
✅ Investigation
✅ TPS & System
The members of the CBDT are selected from the Revenue Services of India. The
members also make the top management of the Income Tax Department.
What are the composition of the Central Board of Direct Taxes (CBDT)?
The CBDT consists of six members and a chairman. The details whereof are
furnished below;
✅ Chairman
✅ Member (Administration)
✅ Member (Revenue and Income Tax)
✅ Member (Investigation)
✅ Member (Legislation)
✅ Member (Audit and Judicial)
✅ Member (TPS and System)

4. What are the Functions of the Central Board of Direct Taxes (CBDT)?
The following are some of the functions of the Central Board of Direct Taxes;
✅ CBDT deals with the matter related to imposition and collection of direct
taxes.
✅ It works for the formulation of several policies and principles
✅ CBDT supervises the whole Income Tax Department
✅ CBDT provides suggestions regarding the changes and amendments in the
direct tax enactments
✅ CBDT provides suggestions regarding the changes in the rates of taxes
✅ CBDT makes proposals for changes in the taxation structure considering the
current government policies.
✅ CBDT also provides an Interim Action Plan for each financial year. The details
whereof are provided below.
The Key Result Areas and the prescribed time frame as mentioned in
the Interim Action Plan for the financial year 2021-22 dated 10 June
2021 are given as under:
Key Result Areas Time Limit
A. Charges of Assessment, Jurisdictional Assessing Officer, and
Exemption Charges
(i) Verification of Demand:
(i) To check all the demand according to PAN and year
from the system, TMS or AST, or any manual demand
(i) 31.07.2021
(ii) 15.07.2021

5. whichever is remained, and also remove the duplicate
entries.
(ii) Certification and verification in CPC Financial
Accounting System (FAS) in some of the cases which
are notified under section 245 as issued by CPC till
March 31, 2021
(ii) Redressal for Grievances:
Disposal of CPGRAM and Electronic Nirvana (E-
nivaran) exceeding 30 days
30.06.2021
(iii) Survey Reports Uploading:
To upload all reports of surveys, scanned copies of
extracted documents procured during the survey but
the same are not impounded to any other document
that is relevant to complete and initiate under section
143(3)/148.
31.07.2021
(iv) The objection of Audit:
To identify and further process;
Final settlement minor and major revenue in 75% and
objections in internal audit raised till 31.03.2020
Final settlement of minor and major revenue of 50%
and 75% respectively and objections in internal audit
raised till 31.03.2021
15.07.2021
31.07.2021
(v) Effects of Rectification and Appeal:
The applications disposal under Ws 154 submitted by
31.07,2021

6. the assesses and accordingly providing the effects of
appeal in all eligible cases as on 01.04.2021
Jurisdictional Assessing Officer
(vi) To upload the related and case documents for
assessment including set aside cases.
Immediate
(vii) To Identify and process all the cases including the case
of 153C, search cases, TR and FT Cases, and Flack
money Act cases. These need centralization in the
central charges.
30.06,2021
(viii) Passing of orders in partial set-aside cases that must
be at least 25% cases of total pendency till 01.04.2021
31.07.2021
Exemption Units:
(ix) The cases that are falling under CCIT jurisdiction are
still termed as incorrect jurisdiction for identification
and transfer to respective CSIT.
As far as
possible
(x) Disposal of petitions that are submitted up to
31.03.2021 to seek condonation for the delay in filing
Form 10 & 10B
30.06.2021
(xi) To complete the consequential rectification made by
assessing officers in all cases in which condonation has
been provided by the CIT for the delay in filing Form
10 & 10B.
31.07.2021
B. NAFAC

7. Disposal of penalties and assessment of at least 30% in
cases that are barred as on 30.09.2021
31.07.2021
C. TDS Units
(1) For reduction in TDS demands as of 01.04.2021 which
includes demands that are not fallen due by 25%
The collection out of demands of TDS demands as of
01.04.2021 also includes demand not fallen due by
10%
31.07.2021
(ii) The examination of the first 30 top short payment
cases according to the Assessing Officer and also
according to the MIS report (SP with unconsumed
challans)
(iii) The reconciliation cases that are brought forward (as
of dated 01.04.2021) of TDS as reported by AINs with
payment by State through OLTAS and based on the
report provided on the TRACES portal.
(iv) Seminars and awareness campaigns have to be
conducted with the help of webinars
(v) Disposal of applications under section 154 of the
Income Tax Act as submitted by the assesses up to
31.03.2021
(vi) Passing of order under section 201(1)/(IA) for cases
that are falling under the TDS survey conduct report
conducted up to 31.03.2021

8. (vii) The disposition of l pending applications for lower or
nil deduction as of 30.06.202 under section u/s 197
and 206C (9) with TDS or TCS certificates
D. CIT(AUs)
(i) At least 100 draft appellate orders Passing 31.07.2021
(ii) Appeals for V5V regarding form 5 that is received must
be disposed
Within one
week from the
receiving of
the Form
E. CIT(Audit)
(i) The disposition of pending references in respect of
certificates needed for the disposition of reward claims
of informants.
31.07.2021
(ii) To conduct a meeting with the level of Pr. CIT (Audit)
and Pr. Director (Audit) to settle the pending
objections as soon as possible.
31.07.2021
(iii) To take action for settlement IAP objections of at least
20% that are raised in the financial year 2020-21
31.07.2021
For more information, Visit us at: https://academy.tax4wealth.com/